The EU has opened an investigation into Google over its artificial intelligence (AI) summaries which appear above search results.
The European Commission said it would examine whether the firm used data from websites to provide this service - and if it failed to offer appropriate compensation to publishers.
It is also investigating how YouTube videos may have been used to improve its broader AI systems, and whether content creators were able to opt-out.
A Google spokesperson said the probe risks stifling innovation in a market that is more competitive than ever.
Europeans deserve to benefit from the latest technologies and we will continue to work closely with the news and creative industries as they transition to the AI era, they said.
The EU's investigation will also cover Google's AI Mode, which gives answers in a conversational style with links to other pages.
This is in addition to the tech giant's existing search platform - providing an experience similar to its rivals such as ChatGPT.
Google's introduction of its AI Overview summaries was met with concerns it could result in fewer visitors to websites.
Without people clicking on web pages, sites generate less money from advertising.
The Daily Mail previously claimed the number of people who clicked its links from Google search results fell by around 50% since the AI Overview feature's introduction.
The Commission said it was concerned both web publishers and YouTube video creators were not being compensated or given the opportunity to opt-out of their content being used to train the company's AI models.
Ed Newton-Rex from AI fairness campaigners Fairly Trained said it was career suicide for people to not publish their work on YouTube or online.
He told the BBC Google essentially makes it a condition of online publishing that the firm can use your work to build AI that competes with you.
This investigation could not come at a more critical time for creators around the world, he said.
The investigation will assess whether Google has used the work of others published online to build its AI tools that it profits from.
Its generative AI systems can produce text, images, and video in seconds, in response to simple prompts.
Many firms now do this and have used vast amounts of online content to train their systems.
Despite these advancements, creatives have voiced concerns their work may have formed the basis for big tech's AI outputs, jeopardizing their rights and livelihoods.
Commission executive vice-president Teresa Ribera emphasized that a free and democratic society relies on diverse media and open information access.
She mentioned that while AI is driving remarkable innovations and benefits for society, its development should align with EU values.
The Commission's strict digital regulations may lead to significant fines for tech companies found to be in violation.
The investigation threatens to intensify after the EU faced backlash from US lawmakers regarding its enforcement actions.
